Icelandic investor Baugur is facing pressure from Moss Bros family shareholders to declare its hand, as rival bidders circle the embattled menswear chain.

Members of the Gee dynasty are understood to have received approaches from other investors who would let them roll their equity into a new enterprise. Together, the founding Moss and Gee families speak for 26.7 per cent.

'We are being squeezed by the Icelandics,' said Michael Gee, a former director whose family owns 9 per cent. 'Baugur seems quite happy for the share price to drift. This company is a very solid one: there is no debt, cash in the bank and no pension deficit. I know of three possible parties that are interested.'

Moss Bros was formed in 1998 when Moss Bros Hire acquired Cecil Gee, uniting the two families on its share register. In December Baugur, Moss's largest shareholder, revealed it was weighing up an offer but has stayed silent ever since, causing frustration to mount among shareholders who complain that the value of their investment has almost halved. The shares closed the week at 39.25p, giving Moss Bros a market capitalisation of just £37m.

Investors say the uncertainty is heightened by Moss Bros chairman Keith Hamill's decision to retire in April. A spokesman refused to comment on the search for his successor and whether it would seek Takeover Panel intervention to end the deadlock. In a further twist, Laura Ashley was forced to declare a long-held interest after it increased its stake. However, its lead shareholder, Malaysian conglomerate MUI, is thought to see the 5 per cent stake as a strategic one.